Innovative analysis of management communications

Tiarta^TM is an independent research firm that specializes in the analysis of corporations' ability to convey transparent, consistent, and meaningful information to their stakeholders. Our research is directed toward: hedge fund managers, private equity managers, short sellers, institutional investors, and high net-worth individual investors.

We combine elements of criminal investigative techniques and forensic accounting to analyze corporate communication. Our approach is designed to uncover indications of significant problems (operational, accounting, legal, etc) within the companies we analyze. To view previous sample research, click on one of the following reports:

Our analytical rating system has consistently produced excess returns over the S&P 500 during internal testing. Our analysis is available by report or on a subscription basis through Tiarta. Research is also distributed through The Small Cap Investor and Capital IQ, A Standard & Poor's Business.

Microsoft Corporation's rating affirmed at T2-

February 8, 2010
The Microsoft Corporation (NASDAQ: MSFT) rating was affirmed at T2-. The company’s rating outlook is positive, as management’s statements around the company’s current and projected financial situation improved. Management toned down its overly optimistic view of the company and provided a more grounded approach.

A company with a rating of “T2-” provides limited transparency, consistency, and/or straight-forwardness. There are considerable indications of concern within the presentation and description of the financials and/or other corporate activity.

Rocky Mountain Chocolate Factory rating affirmed at T1

January 29, 2010
The Rocky Mountain Chocolate Factory, Inc.’s (NASDAQ: RMCF) rating was affirmed at T1. Management provided extensive transparency and candor in all aspects of financial reporting. The company’s outlook is neutral.

A rating of “T1” is the highest rating a company is able to achieve from Tiarta. Based on the materials reviewed, the rated company provides transparent, consistent, and direct information.

Coca-Cola: How management alters the presentation of financial results

January 22, 2010
The Coca-Cola Company (NYSE: KO) is the world’s largest beverage company with over 500 brands that span the globe. This did not happen by accident. The company has spent considerable time and money building what many surveys have listed as the #1 brand in the world. The company is a sales and marketing powerhouse.

Though marketing is a necessary part of any business, an excessive use of marketing tactics within the reporting of financials can cause significant transparency issues for investors. Coca-Cola appears to be applying its marketing prowess to its financial reporting. Rather than presenting the information directly, management utilizes selective reporting to guide the investment community toward pre-determined outcomes. Read More...

Research coverage initiated for Rosetta Stone

January 15, 2010
Tiarta L.L.C. initiated research coverage of Rosetta Stone (NYSE: RST) with a rating of T2+, due to solid financial transparency offset by questionable managerial statements surrounding financial guidance. The company’s outlook is cautiously positive as slight adjustments to management’s communications could improve its rating.

Based on the materials reviewed, a company with a rating of “T2+” provides fairly transparent, consistent, and direct information. The reviewed documents do exhibit some indications of concern within the presentation and/or description of the financials and/or other corporate activity.